The latest OECD data show inflation trends across the most developed economies for December. The aggregate measure dropped to 9.4 percent, down from the October peak of 10.8 percent, marking the lowest point since April 2022. In total, 25 of the OECDs 38 member countries experienced a decline in the consumer price index CPI from November to December, signaling a broad easing in price pressures across many advanced economies.
Among the nations, Spain continued to stand among the lower inflation levels in the OECD, dipping from 6.8 percent in November to 5.7 percent in December, even as food prices remained a contributing factor. Switzerland registered 2.8 percent, Japan 4 percent, South Korea 5 percent, Israel 5.3 percent, and Luxembourg 5.4 percent. These figures placed these countries in the lower end of the OECD inflation spectrum, with Spain among the more moderating influences in the group.
When considering the broader pattern of average annual inflation in December, the OECD average stood at 9.6 percent, while Spain recorded 8.4 percent, aligning with the overall trend seen across euro-area economies. Germany registered 7.9 percent, France 5.2 percent, Portugal 7.8 percent, Finland 7.1 percent, Ireland 7.8 percent, Luxembourg 6.3 percent, and Italy around 8.2 percent. Some partner economies noted a generally lower average inflation rate, indicating divergent patterns within the European bloc.
Across the OECD, roughly 15 countries still faced double digit inflation in December, with the highest rates observed in Hungary, Latvia, Lithuania, and Turkey, all above 20 percent. OECD inflation in 2022 ended up more than double the level seen in 2021, reaching 9.6 percent on average — the highest annual rate since 1988, reflecting a broad and persistent price dynamics over the year.
After peaking in June 2022, energy products continued to slow notably in most member economies, declining from 23.8 percent in November to 18.4 percent in December. This marked the lowest energy inflation reading since August 2021. The underlying measure that excludes food and energy fell to 7.2 percent, while total food inflation moderated to 15.6 percent. In Spain, both headline and underlying indicators remained at 15.7 percent and 7 percent respectively, reflecting the ongoing impact of food costs alongside energy dynamics.
richest countries
December saw inflation ease across all of the world’s wealthiest economies in the G seven group with the notable exception of Japan. The sharpest decline occurred in Germany due to a one time subsidy on gas bills that pulled down the price index. In several economies, food and energy inflation continued to drive overall headline inflation, notably in France, Germany, Italy, and Japan. Canada, the United Kingdom, and the United States saw the main pressure coming from non food and energy prices, underscoring a shift in inflation drivers during the month.
Within the euro area, annual inflation measured by the Harmonized Index of Consumer Prices declined to 9.2 percent in December from 10.1 percent in November. Energy inflation continued to ease, yet inflation excluding food and energy edged higher in December. Eurostats preliminary forecast for January 2023 points to a further decline in annual inflation for the euro area to about 8.5 percent, with a pronounced drop in energy inflation and stable inflation excluding food and energy. These trends reflect a gradual cooling of price pressures as the region moves through the winter months.
Across the G 20, annual inflation fell from 9.0 percent in November to 8.5 percent in December. Inflation outside the OECD declined in Brazil and South Africa, while it rose in Argentina, China, India, Indonesia, and Saudi Arabia. These shifts highlight a mixed global path as price dynamics respond to varying energy markets, supply chain resilience, and domestic demand conditions across large economies.